When selling a house, one of the most important documents that will need to be prepared is the draft contract. A draft contract is a preliminary version of the final contract that outlines the terms and conditions of the sale agreement between the buyer and the seller. It is common practice for the draft contract to be prepared by the seller`s attorney and then reviewed and approved by the buyer`s attorney prior to being signed.
The purpose of a draft contract is to ensure that both the buyer and the seller are fully aware of their rights and obligations under the sale agreement. A well-drafted contract will protect both parties against potential legal disputes that may arise during or after the sale process. The following are some of the key elements that should be included in a draft contract when selling a house:
1. Property Description: A detailed description of the property being sold should be included in the draft contract. This should include the address, lot and block number, and any pertinent information about the property`s size and dimensions.
2. Purchase Price: The purchase price of the property should be clearly stated in the contract. This should include any applicable fees, such as closing costs or taxes.
3. Payment Terms: The payment terms of the sale should be outlined in the draft contract as well. This includes the payment method, the date on which payment is due, and any penalties for late payments.
4. Home Inspection: A clause should be included in the draft contract that requires the buyer to have a home inspection conducted within a certain timeframe. This allows the buyer to identify any issues with the property and negotiate repairs or compensation with the seller before closing.
5. Contingency Clauses: Contingency clauses should be included in the draft contract to protect both parties in the event that unexpected circumstances arise. This could include provisions for financing contingencies, appraisal contingencies, or sale contingencies.
6. Closing Date: The draft contract should specify the closing date for the sale. This allows both parties to plan accordingly and make necessary arrangements for the closing process.
In conclusion, a well-drafted contract is essential when selling a house to ensure that both parties are protected and fully informed throughout the sale process. It is important to seek the advice of a qualified real estate attorney to ensure that your draft contract includes all necessary elements and complies with relevant laws and regulations. With a carefully crafted draft contract, both the buyer and the seller can proceed with confidence in their sale agreement.